Q.Merchant Middlemen can be classified into ________ categories.

The answer is option (d) Two.

Merchant middlemen are those intermediaries who buy and take title (ownership) to the goods and then resell them at a profit, thereby bearing the risk of trade. They are classified into two categories:

1. Wholesalers — who buy goods in large quantities from producers and sell them in smaller lots to retailers.
2. Retailers — who buy from wholesalers and sell in small quantities to the final consumers. …